A Local Business Produces Souvenirs for the Tourist Trade

Multiple Choice

A local business produces souvenirs for the tourist trade. The business has fixed costs of $6 thousand, and it costs an additional $9.93 thousand in variable costs to produce 10 thousand souvenirs. A consultant told the business that their marginal cost function is dollars per thousand souvenirs. What will it cost to increase their production to 19 thousand souvenirs?

A) $ 2,735
B) $ 2,582
C) $ 1,397
D) $ 2,324